Authorities and power companies across Russia have shut down illegal crypto mining farms, seized hardware, and handed operators over to the courts. The action against the coin mining facility came amid discussions about a proposal to introduce criminal liability for miners who break future legislation against the industry.
“Underground” crypto-mining farms are closed across Russia
Police and power suppliers have uncovered and dismantled illegal crypto mining facilities in Siberia and southern Russia, local crypto news organizations reported this week, citing authorities. In one of them, the organizers of the mining company have been charged with stealing large amounts of electricity.
Employees of Rossetti North Caucasus discovered a rather large improvised mining site in the Shpakovsky district of Stavropol Krai. Together with law enforcement, they confiscated 66pieces of ore, ASICminers, the regional power companyannouncedon Friday.
Nadezhda village residents who placed equipment in their homes and connected them to the power grid could face criminal charges for operating underground facilities. Power engineers estimate that they burned 954,000 kWh of electricity worth over 6 million rubles ($78,000).
A similar installation was found in the attic of a school in Sherekhov, Irkutsk Oblast. Police seized 25 mining units installed by the school’s electrician and his friend, an IT specialist.
Such cases are common in the Siberian region, known as the mining capital of Russia, where many people mine in basements, garages, and dachas and try to make a buck using subsidized power in residential areas. according to a February report, in Irkutsk, crypto miners at home have filed more than 1,000 lawsuits against them.
This week, the prosecutor’s office in Tomsk, another Siberian province, announced that it had approved criminal charges against seven local residents who organized the illegal connection of several facilities with crypto mining equipment to the power grid. They are accused of causing an estimated 24 million rubles (more than $310,000) in damages to power suppliers.
The latest instance of Russian authorities cracking down on illicit mining comes as lawmakers and government officials prepare to reintroduce an amended bill to regulate illicit mining. The amendment, which would introduce criminal charges and harsher penalties for so-called “gray” miners who evade taxes, has sparked reactions from the crypto industry.
Image credit: Shutterstock, Pixabay, Wiki Commons